Assignment Instructions/ Description
Bring to mind a wide range of healthcare organizations, such as a long-term care facility, large for-profit hospital, a physicians' practice, Veterans Affairs hospital, or a state-run clinic. Consider how budgeting would be influenced depending on an organization's sources of funding. How do you think the purposes or uses of a budget vary according to the kind of healthcare organization it is?
REPLY TO MY CLASSMATE’S RESPONSE TO THE ABOVE QUESTION AND EXPLAIN WHY YOU AGREE? (A MINIMUM OF 125 WORDS EACH)
CLASSMATE’S POST
Several different layers must be looked at when discussing the types of budgets that an organization can have. As there is a vast array of forms a healthcare organization can take, so too can the budgets vary. The one way that they can be the most related is being a conventional based budget rather than a zero-based budget. While a zero-based budget starts from scratch, a conventional budget uses the previous year as a starting point. Particularly for healthcare organizations, this is a good start as unless there are significant changes, volume estimates should remain similar. Where organizations start to differ is in their approach to forming a budget. In an orgaion. For-profit hospitals and physician practices may focus more on the revenue coming in first and expenses second. Conversely, the state-run and VA hospitals will be more focused on their expenses. Not-for-profit hospitals on the other hand, while concerned with revenue and expenses, look at statistics to ensure that they can provide the resources to their patients and expected volume.
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